
Sabah stresses on collab to build local capabilities
Published on: Wed, Jul 09, 2025
By: Sherell Jeffrey Text Size: Hazli, Dr Pascal and Mohd Sabri. Kota Kinabalu: What sets Sabah apart is its emphasis on collaboration rather than competition between companies. Major players are working together to build local capabilities and create sustainable growth. 'Collaboration and co-creation is very important,' said Senior Vice President of Malaysia Assets and Petronas Carigali Sdn Bhd Chief Executive Officer Hazli Sham Kassim, describing how Petronas works closely with local companies to serve smaller customers. 'It is better for us to work with the local company, in this case, Sabah Energy Corporation (SEC) and SMJ Energy (SB), so that they can supply to the local customers. 'This collaborative approach has practical benefits, allowing local companies to grow while enabling major corporations to focus on larger projects,' he said. The industry recognises that Sabah's success depends on developing local talent and expertise. 'You cannot just pick people off the ground from the villages and say, okay, here are our bodies and we are going to do this work for you,' said Malaysia and Vietnam at Hibiscus Petroleum Country Manager Dr Pascal Hos noting the importance of proper capability building. 'You need to build capability, you need to build capacity and that can only be done in collaboration with us as your partners,' he said. The approach is already showing results with Yinson Energy Chief Executive Officer Datuk Mohamed Sabri Mohamed Zain noting that Yinson Energy achieves a notable 95 per cent local content in its operations, including its FPSO Helang in Sarawak, which is staffed entirely by locals. 'Our projects are easily USD1.5 billion, USD2 billion type of capex. Of course, it is a long-term project. It is a long-term recurring income, 20 years, 25 years,' said Mohamed Sabri. These huge investments require sophisticated financing and demonstrate international confidence in Sabah's potential, he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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